After Market: Good News on the Economy Couldn't Generate a Bounce

A pair of economic reports Wednesday defused some of the recent concern that the U.S. economy has fallen back into a funk. ADP's report on private sector job creation was decent, and ISM's report on non-manufacturing activity was surprisingly strong. The President of the Philly Fed said he expects the economy to grow at 3 percent rate this year.

But the major averages edged lower. The Dow Jones industrial average (^DJI) slipped 5 points, the Standard & Poor's 500 index (^GPSC) fell 3 and the Nasdaq composite (^IXIC) lost 20 points.

IBM (IBM) and Disney (DIS) both added about 1 percent. Those gains were offset by 1 percent declines by Pfizer (PFE), Microsoft (MSFT) and Chevron (CVX).

Merck (MRK) was little changed. Earnings were a hair below expectations, but the company also announced a cancer drug partnership with a group of competitors.

But earnings news took a toll on a number of other issues. Buffalo Wild Wings (BWLD) fell 10 percent as its sales numbers disappointed investors. Estee Lauder (EL) fell 5½ percent. Its forecast for the current quarter was weak.

3D Systems (DDD) tumbled 15 percent after lowering its outlook. That also dragged down competitors in 3D printing: Stratasys (SSYS), Exone (XONE) and Voxeljet (VJET).

The freight logistics firm C.H. Robinson (CHRW) skidded 9 percent on disappointing results.

And there were two companies that reported strong quarterly numbers, but fell anyway. Gilead Sciences (GILD) beat expectations and reported strong sales of its recently approved drug for hepatitis C infections. Its stock fell nearly 5 percent. And Ralph Lauren (RL) lost 3½ percent. In addition to upbeat earnings, it raised its outlook. The company is also likely to get lots of positive PR once the Olympics begin. It designed the U.S. team uniforms.

On the upside, Myriad Genetics (MYGN) jumped 15 percent. It beat expectations, raised its outlook and made an acquisition. And Tableau Software (DATA) rallied 12½ percent. Earnings blew past expectations, and Goldman Sachs raised its rating.

Finally, CVS Caremark (CVS) shares lost 1 percent after saying it would stop selling cigarettes -- which generates $2 billion a year in sales. But rival drugstore chains Walgreen (WAG) gained 3 percent and Rite Aid (RAD) gained 2 percent as they could gain disaffected customers.

What to Watch Thursday:
  • Selected chain retailers release January sales comparisons throughout the day.
  • At 8:30 a.m. Eastern time the Labor Department releases weekly jobless claims and fourth-quarter productivity data; the Commerce Department releases international trade data for December.
  • Freddie Mac releases weekly mortgage rates at 10 a.m.
These major companies are due to release quarterly financial statements:
  • 21st Century Fox (FOX)
  • Aetna (AET)
  • Credit Suisse (CS)
  • Dunkin Brands (DNKN)
  • Expedia (EXPE)
  • Gartner (IT)
  • General Motors (GM)
  • Kellogg (K)
  • LinkedIn (LNKD)
  • Lions Gate Entertainment (LGF)
  • New York Times Co. (NYT)
  • News Corp. (NWS)
  • Philip Morris International (PM)
  • Post Holdings (POST)
  • Sony (SNE)
  • Zynga (ZNGA)
-Produced by Drew Trachtenberg.

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Of course we all know it's ALL ABOUT "THE MARKET". We know that all those Wall Streeters and day traders have created Soooo many jobs out here. I have so much "trickle down" money, I'm giving it away. Hold your elected yet BOUGHT OFF Congress accountable, what are you waiting for? This Country called America is full of good decent people who are getting SCREWED by Corporate America and their Government. WAKE UP.

February 06 2014 at 7:12 AM Report abuse rate up rate down Reply

49% vote for Romney~~vote america tea parYt in 2014 n put an end to obamits "WAR ON AMERICA. !!

February 06 2014 at 5:52 AM Report abuse +4 rate up rate down Reply

Don't you think that the people know the truth about the economy? Our government tells us how unemployment is improving but doesn't tell us the truth about the 91 million Americans without a job. We still have many more people unemployed today than when obama took office 5 years ago. We have a record high number of Americans on food stamps. Increases each and every year of obama's presidency to the number of Americans living in poverty. And the media spews the lies from the white house about how our economy is improving. The media is well aware of the fact that the American people can be sold anything if they keep repreating the ssame lies. That's how they sold obama to the voters TWICE! I guess they are sticking to the same tactic since it worked so well with covering for obama.

February 06 2014 at 4:41 AM Report abuse +2 rate up rate down Reply

So everyone is afraid to just mention the reason we are where we are?

So sad.

I come from a generation that would have been outside the White House every day holding up signs saying \"LIAR\" stc. etc.and forcing these ******* politicians to do something!

These younger generations are not only cowards but have not a clue. Yet, their voiice could be heard and reported if they simply protested! Then teh media might WAKE up.

What a shame we are seeing the \"fall of America\".....

February 06 2014 at 3:43 AM Report abuse +3 rate up rate down Reply
1 reply to JOHN's comment

You are right John. The kids of today have it made and are more concerned with their X-Box. As long as they have that along with food and shelter provided by mommie and daddy, they don't care.

February 06 2014 at 7:20 AM Report abuse rate up rate down Reply

Betty, you do remember 2009 and the economy, that was the year the economy fell under the bush jr. administration.

February 06 2014 at 3:26 AM Report abuse -1 rate up rate down Reply

The GOP is doing and saying the same on Obamacare as they did with social security and medicare. Now Obamacare will be worshiped in time like the other fine 2 programs. Some people need medical insurance. Once again you will thank a democrat for these 3 fine programs. Approved by the republican controlled supreme court.

February 06 2014 at 3:24 AM Report abuse -2 rate up rate down Reply
1 reply to toosmart4u's comment

Do they thank a democrat for having their insurance carrier dropping them and paying higher premiums and deductables, or do they thank them for being FORCED to buy something because the government made them do it? Not everyone wants the government to control them!

February 06 2014 at 5:56 AM Report abuse +1 rate up rate down Reply

Robert & Lisa, 2 who cannot think for themselves and worship every word coming from the big republican money machine. Deep down you 2 know the worst president every was bush jr. How soon you forget. Now when you get on social security and medicare thank a democrat.

February 06 2014 at 3:18 AM Report abuse -2 rate up rate down Reply
1 reply to toosmart4u's comment

And while they're at it maybe they should thank a democRAT for the lies, deceit, high taxes, and all the wasteful spending of hard earned tax dollars!

February 06 2014 at 5:59 AM Report abuse +1 rate up rate down Reply
Robert & Lisa

If you want to survive the next 5 years financially, ditch the stock market now and buy precious metals. ALL of the trustworthy advisors are doing and telling us to do that.

February 06 2014 at 3:08 AM Report abuse +2 rate up rate down Reply
Robert & Lisa

Obama, the worst President ever.

February 06 2014 at 3:02 AM Report abuse +2 rate up rate down Reply
1 reply to Robert & Lisa's comment

Rob $ Lisa,
You remind me a of mule going down a corn row with blinders on...can't see or think anything for yourself. Who started two wars that cannot be won over OIL? That would be the tag team of BUSH/CHENEY. Open your eyes for God's sake and get you news from many sources, not just Fox News.

February 06 2014 at 6:59 AM Report abuse rate up rate down Reply
Robert & Lisa

The higher tax rates and the huge debt run up in the past 5 years is ruining our economy.

February 06 2014 at 3:02 AM Report abuse +2 rate up rate down Reply
2 replies to Robert & Lisa's comment

That's the goal of the Progressives!

February 06 2014 at 6:00 AM Report abuse +1 rate up rate down Reply

Once again, you don't know what your talking about. Tax rates have not gone up. What has gone up are Commodities like crude, gasoline, propane, food, shelter. healthcare while millions of jobs have been lost to overseas labor. Government debt means NOTHING while the Fed's print like crazy so the Banks can HOARD.

February 06 2014 at 7:03 AM Report abuse rate up rate down Reply